Days after it launched Ethereum Traded product on its platform for the first time, Swiss Stock Exchange SIX has revealed it has chosen Corda Enterprise platform developed by blockchain Consortium R3 for its trading and settlement services in development.

According to cryptocurrency and blockchain new outlet Coindesk, the Swiss exchange confirmed to it that R3’s Corda will be the underlying blockchain for the digital asset trading, settlement, and custody service that it is creating.

As reported by Smartereum in July 2018, swiss stock exchange six announced it was a first-of-its-kind cryptocurrency trading platform known as the SIX Digital Exchange (SDX). The exchange which is expected to launch in the second half of 2019, will be a fully integrated trading, settlement and custody infrastructure for digital assets like bitcoin and ICO tokens.

However, last November, there were indications that SIX exchange will introduce an exchange-traded product (ETP) which will track an index the top 5 crypto assets including BTC, ETH, XRP, LTC and BCH in terms of market cap and liquidity.

Then, this week news broke that it has launched its Ethereum traded product to join similar products for bitcoin and litecoin on the platform.

Why SIX Stock Exchange Picked Corda’s R3

Per the report, SIX explained that it made its choice after rigorous and time-consuming assessment of various blockchain frameworks. One key consideration, however, was the need to pick a system that will work in a highly regulated space where SIX exchange finds itself.

The Corda blockchain platform is an open-source distributed ledger platform which handles complex transactions and restricts access to transaction data. It was developed by blockchain consortium R3 which has over 300 partners including notable companies like HSBC, Amazon Web Services, Infosys, Citibank, and Intel. SIX will, however, implement a paid enterprise version of Corda.

The chief digital officer at SIX Digital Exchange Sven Roth explained that it took a liking to Corda because its purview goes beyond capital markets such as insurance into areas like identity.

“This was very important to us because when we assessed different vendors, some of them were very focused on niche offerings and limited in their scope to very specific areas, such as post-trade for instance, and we didn’t want to be limited to just that area of expertise. We assessed a lot of vendors and technology stacks – all the ones you can imagine.”

Also Because Of Corda’s Growing Traction

He also confirmed that Corda stood a good chance because its ecosystem is already flourishing.

As Smartereum reported in January, the biggest global payment network SWIFT chose Corda ahead of rival, Ripple to be integrated into its flagship payment network, GPI (or short for Global Payment Innovation). In an announcement, SWIFT’s Chief Marketing Officer Luc Meurant alluded to the growing adoption of Corda as a key factor for integrating it despite the company’s cautious stance towards blockchain.

He noted:

“Given the adoption of the Corda platform by trade ecosystems, it was a natural choice to run this proof of concept with R3.”

Tokenizing Assets on the Blockchain

While affirming the 2019 launch target, Roth said the SDX platform built with Corda will facilitate the tokenization of assets like equities, bonds, funds, structured products, and security token offerings (STOs). He noted that equities currently on the exchange will be tokenized first before the introduction of STOs.